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To: slacker711 who wrote (1963)9/28/1999 12:23:00 PM
From: llwk7051@aol.com  Read Replies (1) | Respond to of 13582
 
INTERVIEW-Ericsson sees strong mobile systems
By Paul de Bendern

STOCKHOLM, Sept 28 (Reuters) - Telecoms group Ericsson said on Tuesday sales of mobile systems, making up almost 50 percent of total turnover, would rise by over 30 percent in 1999 despite worries that China would not grow as expected.

Ericsson , the world leader in mobile systems with 40 percent of the market, said it expected continued strong growth in sales of mobile systems in the coming years. "Europe, Japan and the United States are the driving force for growth in 1999," Mats Dahlin, the head of Ericsson's Network Operators and Service Providers unit, told Reuters. "I see no weakening in Europe or the U.S. next year."

In its first-half report Ericsson had said it expected mobile systems sales -- making up over 70 percent of the Network/Service segment -- to grow by over 30 percent in 1999. During that time, it had also predicted strong growth in China in the second half.

Earlier this year Ericsson, which is also the world's third largest maker of handsets, said sales of all its products in China would grow by 10 percent for 1999.

``The picture in China has changed since six months ago,' Dahlin said, adding that the Chinese were not spending on mobile infrastructure as Ericsson had expected earlier this year.

``There won't be much growth in China this year,' he said.

He said internal changes in China were affecting growth. But he said sales could be better next year as investments return.

But tremendous growth in the United States -- which this year overtook China as Ericsson's biggest market -- Europe and Japan would compensate for less growth in China in 1999.